Federal Way, WA $40,000 Wholesale

[Vayna Jerabek]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $355,000
Cash invested: $500
Sale price: $395,000

In August 2021 I sent out postcards advertising that I buy properties FAST for CASH, and got a call from this seller. He was planning to move to Arkansas, and was interested in the all-cash off-market sale with no contingencies. I went to check out the property and offered $355,000, closing on his timeline. It needed about $40,000 worth of rehab and the ARV was about $520,000. He was pleased with that offer so we put it under contract a few days later!

The seller didn't care what we did with the house so showing the home to buyers wouldn't have been an issue. I posted the property in WAREI (my local FB investor group) for $410,000 but no takers, so I lowered the price to $395,000. Luckily a buyer that passed on my last wholesale was super interested in this one, and was confident from the walkthrough video that he'd like to take the project on. My intuition told me he was serious so I only showed it to him and he ended up signing our assignment contract the next day.

The seller needed a long close to move, so I chose a closing date of 10/22/21 or sooner, with plans to close on 10/15/21. I chose to set the closing date a week out so that if the buyer backed out, I would have time to secure a hard money loan and flip the property myself. 

The best part of this sale was the seller being very easy to work with, since he was happy with our price and our customer service helping him understand the contracts, make moving arrangements, etc. We closed with a $40,000 assignment fee.